Excess Profits Tax

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Dictionary Says

Definition of 'Excess Profits Tax'

A special tax that is assessed upon income beyond a specified amount, usually in excess of a deemed "normal" income. Excess profit taxes are primarily imposed on some businesses during a time of war or other emergency, or beyond a certain amount of return on invested capital. Excess profits taxes are designed to generate emergency revenue for the government in time of crisis. The tax itself is imposed on the difference between the amount of profit that a company generally earns during peacetime and the profits earned during times of war.
Investopedia Says

Investopedia explains 'Excess Profits Tax'

These taxes are also intended to prevent astute businessmen from reaping inordinate profits from increased wartime governmental and consumer spending. Excess profits taxes were levied during both world wars, as well as the Korean War. This tax is not popular with free-enterprise thinkers, who feel that it discourages necessary wartime productivity with its removal of the profit motive.
Search results for

'Excess Profits Tax'

  • Paying Uncle Sam: From Tobacco To $1 Trillion

    http://www.investopedia.com/articles/08/US-taxes.asp
    ... The new income tax was combined with a special excess profits tax for the purpose
    of redistributing the wealth from big business and the upper classes. ...

  • A Concise History Of Changes In US Tax Law

    http://www.investopedia.com/articles/tax/10/concise-history-tax-changes.asp
    ... and excess business profits. These taxes were rolled back following the war in five
    phases, and the economy experienced a huge boom. Government tax receipts ...

  • Tax Treatment Of Ineligible IRA Rollovers

    http://www.investopedia.com/articles/retirement/04/041404.asp
    ... is an important part of correcting excess contributions in a ... Avoiding A Big Tax Bill
    On Real Estate Gains. ... allow sellers to defer taxes on real estate profits. ...

  • Avoiding IRS Penalties On Your IRA Assets

    http://www.investopedia.com/articles/retirement/03/081303.asp
    ... Excess-Accumulation Tax If you are a Traditional IRA owner ... Avoiding A Big Tax Bill
    On Real Estate Gains. ... allow sellers to defer taxes on real estate profits. ...

  • How To Correct Ineligible (Excess) IRA Contributions

    http://www.investopedia.com/articles/retirement/04/042804.asp
    ... you discover that your contribution is in excess of the ... Avoiding A Big Tax Bill On
    Real Estate Gains. ... sales allow sellers to defer taxes on real estate profits. ...

  • An Introduction To Correcting Ineligible IRA Contributions

    http://www.investopedia.com/articles/retirement/04/033104.asp
    ... Unfortunately, in many instances, excess contributions are not discovered ... Avoiding
    A Big Tax Bill On Real Estate ... sellers to defer taxes on real estate profits. ...

  • Avoiding A Big Tax Bill On Real Estate Gains

    http://www.investopedia.com/articles/tax/09/property-sale-installment-payment.asp
    ... this case, Hal will have to report an excess payment of ... Avoiding A Big Tax Bill On
    Real Estate Gains. ... sales allow sellers to defer taxes on real estate profits. ...

  • Get A Tax Credit For Your Foreign Investments

    http://www.investopedia.com/articles/tax/08/foreign-tax-credit.asp
    ... Any excess and/or unused credit can be carried back one ... Avoiding A Big Tax Bill On
    Real Estate Gains. ... sales allow sellers to defer taxes on real estate profits. ...

  • Selling Losing Securities For A Tax Advantage

    http://www.investopedia.com/articles/04/122704.asp
    ... per person if married filing separately); any excess loss may ... Avoiding A Big Tax
    Bill On Real Estate Gains. ... allow sellers to defer taxes on real estate profits. ...

  • Soda Tax: Penalizing The Pudgy - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0909/Soda-Tax-Penalizing-The-Pudgy.aspx
    ... a well-known killer and despite warning labels, taxes in excess of $3 ... Check out Parched
    For Profits? ... The Bottom Line As for the tax, President Obama (a smoker ...

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